Dealership Pricing

[Beer Belly]

I know there are different levels, just looking to put them in order......MSRP......Supplier.....Employee.....Invoice.....then what ever you can get

[LaserBlueZ71]

My personal opinion is whenever they say "employee pricing" is on, I call bullshit. I very much doubt any dealership would truly sell a vehicle for employee level discounts, unless employee discounts are next to nothing. I believe there are huge amounts of profits in new vehicles. If the list price on a truck is say, 50K, I wouldn't be surprised if the total cost of that truck to the dealer is probably 30K. It should be criminal to make that much money off of vehicle sales.

 

It's obvious dealerships are making huge profits, just by the dealership alone. When you walk into a new, fancy building, loaded with fancy coffee machines, free ipads to use while you wait, big screen TV's to watch, bathrooms that look like something out of a luxury home with $500 hand dryers, that tells me one thing, they are making huge money. All of that crap has to be paid for somehow, and it's the new vehicle profits that are paying for it.

 

The worst part is, because of the insanely large population on this earth, dealerships really don't need to give good deals anymore. If you play hard to get and say no, I want a better price, the dealership knows they will have 50 other people walk in on that day and buy a car, so pleasing everyone, or even 75% of customers, isn't even required anymore to have good sales numbers. Just the sheer number of people who walk in and buy a vehicle on a whim is enough to support the automakers.

[Tattooo]

My personal opinion is whenever they say "employee pricing" is on, I call bullshit. I very much doubt any dealership would truly sell a vehicle for employee level discounts, unless employee discounts are next to nothing. I believe there are huge amounts of profits in new vehicles. If the list price on a truck is say, 50K, I wouldn't be surprised if the total cost of that truck to the dealer is probably 30K. It should be criminal to make that much money off of vehicle sales.

 

It's obvious dealerships are making huge profits, just by the dealership alone. When you walk into a new, fancy building, loaded with fancy coffee machines, free ipads to use while you wait, big screen TV's to watch, bathrooms that look like something out of a luxury home with $500 hand dryers, that tells me one thing, they are making huge money. All of that crap has to be paid for somehow, and it's the new vehicle profits that are paying for it.

 

The worst part is, because of the insanely large population on this earth, dealerships really don't need to give good deals anymore. If you play hard to get and say no, I want a better price, the dealership knows they will have 50 other people walk in on that day and buy a car, so pleasing everyone, or even 75% of customers, isn't even required anymore to have good sales numbers. Just the sheer number of people who walk in and buy a vehicle on a whim is enough to support the automakers.

You hit it on the head [emoji106] ....I dont think theres a 20k mark up or even close on a 50k car but definitely get your point

[Z45]

GM Employee Price (Fixed)

Invoice (less holdback)

Supplier Price (Fixed)

MSRP

[Beer Belly]

GM Employee Price (Fixed)

Invoice (less holdback)

Supplier Price (Fixed)

MSRP

So, Employee Pricing is below Invoice ??

[Z45]

Yes, often just a few $100.

 

 

Note by fixed, it means the dealer cannot alter the price, it is what it is for each vehicle and he cannot change it.

[scott19677]

Yes, often just a few $100.

 

 

Note by fixed, it means the dealer cannot alter the price, it is what it is for each vehicle and he cannot change it.

But they can throw in goodies, accessories and swag along with showing more cash down and padding your trade in. I have seen some crazy numbers that come out of nowhere from the sales manager. Those guys can get really creative when they need to move something.

[Rogue_Wolf]

Lol

The dealership doesn't make its fortune from selling us trucks, it's all the maintenance and service/ "approved" aftermarket parts that make them money. As well as insurance based vehicle repairs.

$150 per hour shop labour rate at my dealership. Autopac (public insurance in Manitoba) rate for repairing vehicles involved in collisions is around $80 per hour.

As far as buying, depends on the inventory on the lot, what day of the month or is (month end is a good time for salespeople to pop off an extra deal, or a sales manager to see an opportunity to increase the bottom line for the month), and that month you are buying. The prices will fluctuate all year long. So called "sales" events = price on vehicle is now that much higher. No savings for the consumer really.

In Canada, they run TruckTober month to blow out last years dusty trucks to make room for shiny next year's model. This time of year can be a good time for a deal.

[NorthskyblueT1]

I know there are different levels, just looking to put them in order......MSRP......Supplier.....Employee.....Invoice.....then what ever you can get

 

Supplier/employee/invoice are usually pretty close together, and don't take into account anything else the dealer is willing to chip in. The basic order you've put them in is correct.

 

 

My personal opinion is whenever they say "employee pricing" is on, I call bullshit. I very much doubt any dealership would truly sell a vehicle for employee level discounts, unless employee discounts are next to nothing. I believe there are huge amounts of profits in new vehicles. If the list price on a truck is say, 50K, I wouldn't be surprised if the total cost of that truck to the dealer is probably 30K. It should be criminal to make that much money off of vehicle sales.

 

It's obvious dealerships are making huge profits, just by the dealership alone. When you walk into a new, fancy building, loaded with fancy coffee machines, free ipads to use while you wait, big screen TV's to watch, bathrooms that look like something out of a luxury home with $500 hand dryers, that tells me one thing, they are making huge money. All of that crap has to be paid for somehow, and it's the new vehicle profits that are paying for it.

 

The worst part is, because of the insanely large population on this earth, dealerships really don't need to give good deals anymore. If you play hard to get and say no, I want a better price, the dealership knows they will have 50 other people walk in on that day and buy a car, so pleasing everyone, or even 75% of customers, isn't even required anymore to have good sales numbers. Just the sheer number of people who walk in and buy a vehicle on a whim is enough to support the automakers.

 

The biggest revenue streams at a dealership are typically used vehicles (which is tied to new vehicle sales), service, parts. Selling new vehicles isn't what brings in the big money, but it is usually true that the higher-optioned the vehicle, the more profit is made. BUT...a lot (most) of that goes to the manufacturer, not the dealer.

 

My understanding is that most dealerships do not own their inventory of new vehicles. Some might if they have a lot of cash, but for the most part, they finance them through the manufacturer and have to pay interest and fees just the same.

 

I don't think it's criminal to make money selling vehicles, but there are definitely some questionable finance practices and other aggressive sales tactics aimed at selling people vehicles they truly cannot afford...buyer beware.